Cbus breach rouses call for independent directors

Bank-owned superannuation funds claim the alleged leaking of member details from one of ­Australia’s biggest industry super schemes, Cbus, underscores the need for independent directors.

The Financial Services Council said that the inappropriate passing of personal information to a third party – in this case the Construction, Forestry, Mining and Energy Union (CFMEU) – was particularly alarming as workers were legally compelled to put 9.25 per cent of their salary into a super fund.

The Australian Financial Review revealed on Monday that the $22 billion Cbus fund allegedly leaked the private financial details and home addresses of hundreds of non-union workers to the CFMEU as part of an industrial campaign.

“I have the highest regard for [Cbus chairman]
Steve Bracks
and [Cbus chief executive]
David Atkin
, but if these allegations are correct, the unions would appear to believe that industry super funds are a branch office for their industrial activities," said FSC chief
John Brogden
. “This is another example of why there needs to be independent governance of super funds," Mr Brogden said.

Cbus has one independent director – former federal treasurer
John Dawkins
. The CFMEU claims come only days after it was revealed Health Industry Plan, an industry super fund, removed its chairman and the chief executive over a corporate-expenses scandal.

“It’s not a good thing to happen [but] it looks like one individual has given information that has been used inappropriately," Mr Garcia said, adding that the two incidents involving industry funds were separate. “These are individual issues. There is no systemic-based fraud," he said.

Master Builders Association of NSW executive director
Brian ­Seidler
said news of the leak was disturbing and action was required from Cbus.

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“They have to do something to retain [the] confidence of their members," he said.

Mr Seidler said that if Cbus failed to allay concerns then it could lose members to other funds. If they find where the leak came from they should be taking pretty swift action," he said.

Mr Seidler said he still backed the board, which includes Master Builders Australia chief executive
Wilhelm Harnisch
.

“I think that the governance at the highest level is very strict; for sort of thing to happen it would have to be at the lower end," Mr ­Seidler said. “I have a view that superannuation, that running a superannuation fund, particularly one the size of Cbus, goes beyond the politics of membership of a union . . . I think the people who run the fund are above that."

The Cbus board is chaired by former Victorian premier Steve Bracks. He was unavailable for comment.